Open your own umbrella

[fabios]

Thanks folks for all your replies.
Open a startup in the technical consultancy field that I specialise in (like a Ltd. Company). Now, if this company pays me like an umbrella does (cutting all taxes, paying NIs etc.) and I can prove that to the agency, then ideally this company can sign the contract. What that does is gives revenue to this company, which can tomorrow be seen in a positive light when I'll be going for fund raise etc.
Going via a 3rd party umbrella unit, I cannot show revenue for the company.

In my recent assignment I had to answer lot of questions checking if there is any relation between myself and the umbrella, e.g. whether it's not run by my Mrs or myself.

[northernladuk]

Open a startup in the technical consultancy field that I specialise in (like a Ltd. Company). Now, if this company pays me like an umbrella does (cutting all taxes, paying NIs etc.) and I can prove that to the agency, then ideally this company can sign the contract. What that does is gives revenue to this company, which can tomorrow be seen in a positive light when I'll be going for fund raise etc.
Going via a 3rd party umbrella unit, I cannot show revenue for the company.

But I guess the key there is to convince the agency to accept you - which I have very less confidence given my agency is a goliath and would not do so. So thanks everyone again. In-case I find a way through, or more ideas to make this happen, I'll report back here !

There is so much wrong with that I have no idea where to start. Sorry to be harsh but to say you don't have a clue what you are doing is giving you way more credit that you deserve. I dont' think I've ever seen anything like it

[lucyclarityumbrella]

I understand where you are coming from, but as you said many agencies will not accept that without specific compliance requirements.

Setting up an umbrella requires a lot of in depth work, from contracts with consideration of employment / B2B / tax law, software requirements, pension arrangements, insurances (which agencies will want with bare minimums that are over the million mark, the bigger ones asking for at least £10m) to name but a few, seems excessive if you are only looking to do this as a consultancy. For it work you would have to be paid normally as a PAYE umbrella, charging yourself a margin for the payroll process which then has to cover the costs of the business, leaving very little company profit (unless your contractro numbers are high). Having started an umbrella from scratch, with experience in the industry, it was a hard slog to say the least. Also as a heads up a lot of the agency contracts will not allow for a director to be an employee / contractor through the umbrella either.

[northernladuk]

Hence my original question.

It’s times like these that you look at post history to see what happened in the past.

Yup. You nailed it. Your first question was the end of this thread. OP doesn't know it but it was.

[northernladuk]

I understand where you are coming from, but as you said many agencies will not accept that without specific compliance requirements.

Setting up an umbrella requires a lot of in depth work, from contracts with consideration of employment / B2B / tax law, software requirements, pension arrangements, insurances (which agencies will want with bare minimums that are over the million mark, the bigger ones asking for at least £10m) to name but a few, seems excessive if you are only looking to do this as a consultancy. For it work you would have to be paid normally as a PAYE umbrella, charging yourself a margin for the payroll process which then has to cover the costs of the business, leaving very little company profit (unless your contractro numbers are high). Having started an umbrella from scratch, with experience in the industry, it was a hard slog to say the least. Also as a heads up a lot of the agency contracts will not allow for a director to be an employee / contractor through the umbrella either.

His model is fundamentally flawed so the umbrella question is now moot.

[coolestchip]

Harsh is fine, for me, it's a place to bounce back ideas and see if one can work through to get some more out of an Inside IR35 contract.

Thanks for your help folks, and being patient!

[northernladuk]

Harsh is fine, for me, it's a place to bounce back ideas and see if one can work through to get some more out of an Inside IR35 contract.

Thanks for your help folks, and being patient!

There are about three quarters of a million contractors trying to get more out of inside contracts. It's gonna take something very special and very clever to do it and no one has so far.

[northernladuk]

What did your brolly say?